Short ETH reaches record high as market leverage surges

The short position in Ethereum (ETH) has reached a record high, indicating a pronounced bearish sentiment in the derivatives market. Traders are increasingly confident that ETH prices will continue to decline, with total open interest (OI) surpassing 20 billion USD, reflecting a strong increase in speculative activity. The effective leverage ratio (ELR) has also reached a record high, increasing the risk of rapid liquidation if the market moves against it.

Technical indicators, such as RSI, show that bullish momentum is weakening, while resistance around 3,600 USD remains a significant challenge. These factors, along with reduced interest from institutional investors and a high level of caution in trader sentiment, create a tense market environment. If Ethereum prices surge unexpectedly, liquidation pressure could lead to a "short squeeze", but if prices continue to decline, market tension will increase.

Despite the current somewhat negative sentiment, there remains an optimistic outlook for recovery in the coming months, with predictions that ETH prices could reach 5,000 to 10,000 USD, but this depends on various factors.